Scrap Industry News

Green Metals Inc. (GMI) of Canada has been chosen by Toyota Motor Manufacturing Canada to be the marketing agent for scrap metal originating from Toyota’s manufacturing plants in the country. Material generated at the facility will be sold on a monthly bid basis.

Green Metals began the program this August, when the company began using local vendors to supply logistical support for the operation.

Previously, Green Metals announced the construction of its eighth scrap metal operation in North America, which will be in Woodstock, Ontario. The facility will be similar to other GMI operations in that it will receive, process and ship scrap materials within fully enclosed buildings.

GMI says it expects construction of the scrap facility will be completed by the end of this year.

The facility will be situated on a 17-acre site along with Maple Automotive Corp. and a warehouse operated by Toyota Tsusho Canada.

Green Metals estimates that the facility will take in from 5,000 to 6,000 tons of recyclable material, primarily ferrous and nonferrous metals, per month.

The new SeverCorr electronic arc furnace (EAF) steel mill in Columbus, Miss., has received its first shipment of scrap metal from local recycler Columbus Scrap Material Inc. (CSM).

"We are honored to be the first to supply product to SeverCorr for this next phase of their production," CSM President Gregg Rader says.

Henry Weiss founded Columbus Scrap Material in Columbus in 1956. In 1996, Rader took over the company’s operations. It supplies scrap metals of different grades to steel mills in Mississippi, Tennessee and Alabama and employs approximately 80 people at three locations.

"We are delighted to be able to do business with a local company like Columbus Scrap Material," SeverCorr’s Melt Shop Manager Tony Gurley says of the 20-ton shipment received in mid-July. "It is fitting that theirs should be the first load delivered."

SeverCorr has retained Jefferson Iron & Metal, Birmingham, Ala., to manage scrap procurement for the mill.

SeverCorr will purchase premium busheling, factory bundles and shredded scrap grades for its manufacturing process, according to the company. The company’s owners say it will be the first scrap-based compact strip production steel mill in the world designed to produce exposed automotive steel, regarded in the industry as one of the hardest steels to manufacture in large quantities.

The new EAF is designed to be able to turn inbound scrap shipments into a hot band roll of steel in as little as four hours

"This is an exciting day for us and for the community," says Rader. "We are looking forward to continuing growth and progress for everyone involved."

PSC Metals, headquartered in Cleveland, has announced its plans to develop a greenfield operation in Rome, Ga., that will act as feeder yard for its Chattanooga, Tenn., shredding operation.

The company says the five-acre facility will be operational later this year.

David Kerfeld, GM of PSC’s Chattanooga operations, says, "The location of this new Rome facility will ideally position us as we continue to grow our market share in the Southeast."

Earlier this year, PSC acquired the ferrous and nonferrous assets of Ravenna Salvage in Akron and Barberton, Ohio, and the assets of Midwest Sales LLC, a six-acre ferrous and nonferrous scrap feeder yard in Cuba, Mo. The site now supports PSC Metals’ shredding operation in St. Louis.

PSC Metal is engaged in the buying, selling and processing of ferrous and nonferrous scrap. The company also provides on-site mill services in partnership with some of the world’s best-known and largest steel producers.

More information is available at www.pscmetals.com.  

O’Brien Recycling Corp., Franklin Park, Ill., has been named to Crain’s Chicago Business’s "Fast Fifty."

O’Brien Recycling landed at the 11th spot on the "Fast Fifty" list, having generated 945 percent revenue growth throughout the past five years.

George C. O’Brien, 34, leads the company, which boasts $33.1 million in revenue and continues to expand. From 2002 to 2006 ferrous scrap processing tripled, while nonferrous scrap processing nearly doubled at the company.

The Institute of Scrap Recycling Industries Inc. (ISRI) has reported that it has beat its membership goals for 2007, bringing the association’s total membership to 1,451 companies.

The figure is the largest for the association since 1998. This year also marks the fifth straight year of membership growth for the association.

Columbus, Ohio, Passes Scrap Metal Theft Ordinance

Columbus, Ohio, recently passed an ordinance that attempts to curb metal theft. The ordinance, 0441-2007, went into effect Aug. 23.

City Council member Andrew Ginther says, "I believe this bill protects Columbus residents, provides police the tools they need to fight scrap metal theft and is fair to the recycling industry here in Columbus."

The ordinance mandates licensing requirements for scrap metal dealers, improved record keeping and the collection of the sellers’ personal information. Scrap dealers are required to provide such information daily. Those unable to do so are required to hold the material for seven days.

The ordinance also calls for limiting scrap metal sellers to one catalytic converter and two consumer appliances without proof of ownership. Under the bill, scrap dealers need a license, which must be renewed yearly at a cost of $500. Scrap dealers with a felony or theft conviction in the past 10 years are prohibited from obtaining a license.

The bill also requires scrap metal facilities to hold for 30 days materials identified as stolen and where the rightful owner has been identified. Dealers may scrap the material if the items are unclaimed.

The Alcoa Materials Management (AMM) business segment of Alcoa Inc., headquartered in Pittsburgh, has selected its annual list of the top 10 scrap suppliers.

AMM began the program in 2004. This year, the company recognized companies in two new categories: Most Improved Supplier and Copper Supplier of the year.

The 2007 Alcoa Materials Management top scrap suppliers are:

Copper Consulting Industries LLC, Glendale, Ariz., was named Copper Supplier of the Year, and Mervis Industries Inc., Danville, Ill., was named Most Improved Supplier for 2007.

"Our goal is to increase scrap units by utilizing fewer scrap dealers and focusing on strategic dealers who work closely with us on substantial volumes, long-term and formula-based pricing," Rich Markiewicz, VP of metal purchasing for Alcoa Materials Management, says.

Among the criteria AMM uses to select its top suppliers are scrap volume, scrap value, quality, proximity to Alcoa’s plants; number of Alcoa plants supplied, timely delivery, environmental compliance, safety programs and ISO 9000 certification.

"These 12 scrap strategic suppliers are Alcoa’s benchmark in grading all scrap dealers from whom we are buying," Markiewicz says. "This outstanding group has formed a partnership with Alcoa Materials Management and Alcoa plants to work together to understand each others needs and objectives in improving the scrap process within Alcoa plants."